Dilapidations

Dilapidations are breaches of lease covenants relating to the condition of a property, and the process of remedying those breaches.

Tenants agree, on entering a lease, to keep the premises in repair. If they don’t, landlords can serve a schedule of dilapidations — either during the lease (an interim schedule) or, more commonly, at its end (a terminal schedule, now subject to the Dilapidations Pre-Action Protocol). The schedule itemises the breaches and sets out the remedial work required.

Tenants can usually choose to carry out the work themselves during the lease, or pay financial compensation instead once the lease has ended. That compensation typically covers the cost of the works, professional fees, the landlord’s costs in making the claim, mesne profits (loss of rent, rates etc.) and VAT where applicable.

Every commercial landlord and tenant faces dilapidations at some point. It’s a complex area of property litigation that needs detailed, expert advice. This is which is where we come in.

We act for both landlords and tenants, negotiating safe, successful outcomes on claims, enforcement and defence — including lease-end strategy, repair notices, conditional break clauses and dispute resolution. We also advise on diminution valuations and provide expert witness evidence, working strictly within RICS guidance and the Dilapidations Pre-Action Protocol.

 

Contact us for more information on how we can help you get the best result.

• Tenant Services
• Landlord Services

 

Tenants Services

Getting comprehensive advice early — at acquisition, through the lease, and at its end — is the best way to limit your exposure to dilapidations. We can help with:

• Pre-acquisition surveys and due diligence.
• Preparation of Schedules of Condition
• Dilapidations assessments for Financial Planning and compliance with financial reporting standards. (FRS12)
• Advice on repair notices
• Advice on interim schedules and statutory protection
• Advice on end-of-term schedules and financial settlements
• Strategic advice
• Break clause advice
• Dilapidations portfolio management for multiple locations.
• Procurement of remedial works
• Section 18 Valuation advice.

FOR FURTHER INFORMATION